Nissan
Japanese carmaker Nissan has forecast a full-year profit, saying chip shortages and coronavirus-related disruptions could affect sales but were overcome by ‘strict financial discipline’. will go
According to the news agency AFP, the company says it still expects to make a profit of 155 billion yen ($1.20 billion) in the 2022 fiscal year and has not changed the revenue operating system.
The company cut its annual unit sales target by eight percent to 3.4 million vehicles, but another concern came in the form of reduced semiconductor supply due to the effects of the corona virus in China.
Nissan said net profit fell 43 percent to ¥115 billion in the nine-month period.
However, during the third quarter of the year, the net profit increased by 55% compared to the previous year.
The company’s officials say that ‘currency fluctuations and increase in raw material prices had a significant impact in the third quarter, while the shortage of raw materials due to Corona also led to a decrease in sales.’
Nissan’s chief executive officer, Makoto Uchida, said in a statement that the third quarter was also very difficult in terms of business, but during this period the newly introduced models caught the attention of customers.
According to him, ‘Now we are expecting a strong response in the market for the future as well.’
“For the fourth quarter, it is expected that the negative impact of the decline in profit volume will be offset by continued discipline and improved performance,” the company said.
The results have also led Nissan to a balanced deal with its French partner Renault.
The deal, signed earlier this week, will also reduce Renault’s decades-old lead over Nissan as it will reduce Renault’s stake in the Japanese company from 43.4% to 15%.
Under the deal, Nissan will also get a 15 percent stake in Renault’s new electric vehicle projects.
The deal is a major step toward rebalancing the company after issues ranging from the arrest of former chief Carlos Ghosn to pandemic-induced semiconductor shortages and the recent conflict in Ukraine.
On the other hand, some analysts believe that despite the revival of the Nissan-Renault relationship, there may be some uncertainty that could hinder Nissan’s return to normality.